ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Jun. 2017) net income data. The Revenue data used here is two times the semi-annual (Jun. 2017) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Jupiter Dividend & Growth Trust ROE % Related Terms
Jupiter Dividend & Growth Trust ROE % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Asset Management subindustry, Jupiter Dividend & Growth Trust's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Jupiter Dividend & Growth Trust ROE % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Jupiter Dividend & Growth Trust's ROE % distribution charts can be found below:
* The bar in red indicates where Jupiter Dividend & Growth Trust's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Jun. 2017) net income data.
ROE % is displayed in the 30-year financial page.
Jupiter Dividend & Growth Trust (LSE:JDT) has a ROE % of 327.49% as of Jun. 2017. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Jupiter Dividend & Growth Trust and its competitors. This is 218% above median its historical median of 102.92.
Is Jupiter Dividend & Growth Trust's ROE % too high?
Jupiter Dividend & Growth Trust's current ROE % of 327.49% is 218% above median its 10-year median of 102.92. The Asset Management industry median ROE % is 6.52. Jupiter Dividend & Growth Trust's value of 327.49% is 4922.9% above this industry median.
How does Jupiter Dividend & Growth Trust's ROE % compare to competitors?
Jupiter Dividend & Growth Trust's ROE % of 327.49% can be compared against companies in the Asset Management industry. The industry median ROE % is 6.52. Jupiter Dividend & Growth Trust's value of 327.49% is 4922.9% above this benchmark. While the company's 10-year median is 102.92 vs. the industry median of 6.52, Jupiter Dividend & Growth Trust has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Asset Management company?
The median ROE % among Asset Management companies is 6.52, based on 1,608 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Jupiter Dividend & Growth Trust's current ROE % of 327.49% is 4922.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Jupiter Dividend & Growth Trust and its competitors. For the Asset Management industry, the median ROE % is 6.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jupiter Dividend & Growth Trust's current ROE % is 327.49%, which is 218% above median its own 10-year median of 102.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jupiter Dividend & Growth Trust stock overvalued right now?
Jupiter Dividend & Growth Trust (LSE:JDT) has a current ROE % of 327.49%. The current ROE % is 327.49%, which is 218% above median its 10-year median of 102.92 and 4922.9% above the Asset Management industry median of 6.52. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Jupiter Dividend & Growth Trust (LSE:JDT), the current ROE % is 327.49% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Jupiter Dividend & Growth Trust Business Description
Jupiter Dividend & Growth Trust PLC operates as an investment trust. The company's investment objective is to provide Ordinary Income and Common shareholders with a high and rising income together with the possibility of capital appreciation and to provide Zero Dividend Preference and Common shareholders with a predetermined level of capital growth. The Company's investment policy is to invest in a portfolio of UK listed equities, UK equity-related securities such as convertible securities, preference shares, convertible unsecured loan stock, warrants and other similar securities and UK fixed interest securities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:JDT has been successfully added to your 